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RTX Corp. stock was up 8% in premarket trades on Tuesday after the defense contractor’s adjusted profit beat analyst estimates, it launched an accelerated stock buyback program, and sold a unit for $1.3 billion.
RTX
RTX,
formerly known as Raytheon, swung to a third-quarter loss due to repair costs of $1.53 a share from microscopic contaminants found in Pratt & Whitney turbines and other one-time expenses.
The defense contractor said it lost $984 million in the third quarter, or 68 cents a share. In the year-ago quarter, RTX earned $1.39 billion, or 94 cents a share.
Adjusted third-quarter profit at RTX totaled $1.25 a share, ahead of the FactSet consensus estimate of $1.22 a share.
Revenue dropped 21% to $13.46 billion, including a charge of $5.4 billion related to the previously disclosed Pratt powder metal matter. Analysts expected revenue of just under $18.6 billion.
Also read: RTX to book $3 billion charge for powder-metal condition in some Pratt & Whitney engines
RTX said its board has approved a $10 billion accelerated share repurchase program “commencing almost immediately.”
RTX also said it’s selling its cybersecurity, intelligence and services business within its Raytheon segment for $1.3 billion. RTX did not provide the name of the buyer.
Looking ahead, RTX expects adjusted 2023 profit of $4.98 a share to $5.02 a share, compared to its earlier projection of $4.95 a share to $5.05 a share, and compared to the analyst estimate of $5.01 a share.
RTX was formerly called Raytheon and renaming itself in July.
Prior to Tuesday’s trading, RTX stock was down by 27.5% in 2023, compared to a 9.8% gain by the S&P 500
SPX.
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